Looking for Inflation Protection? Take TIPS off Your List

By

Brett Arends

Feb. 1, 2013 5:18 pm ET

Would you buy an investment that was guaranteed to lose money?

That is the situation investors are embracing today in the market for Treasury inflation-protected securities, or TIPS—bonds issued by the U.S. Treasury whose value is designed to keep up with consumer prices.

The effective interest rates on TIPS have collapsed to record lows. It...